Bank of America expects investment banking fees to fall more than 10% in Q3

Bank of America expects third-quarter investment banking fees to decline more than 10% from a year earlier, to roughly $1.6 billion-$1.8 billion, while sales and trading revenue is projected to remain flat. CEO Brian Moynihan said the broader investment banking market is down about 10%, though the bank continues to see a strong deal pipeline, particularly among middle-market clients. The outlook follows a strong second quarter, when Bank of America reported a 50% increase in investment banking fees and a 33% rise in trading revenue. Shares fell about 5% after the forecast, raising concerns that the recent AI-fueled rebound in Wall Street dealmaking and trading may be losing momentum; Moynihan also warned that higher interest rates could reduce financing demand.